eBay's case

Running head: EBAYS CASE1The eBays Inc. case1. What is eBays e-business model and why has it been so successful?The eBay Inc., previously known as the Auction Web, is a multinational e-commercecorporation that was founded by Pierre Omidyar on September 4th, 1995. The company operateson an e-business model known as the Auction Model whereby the site acts as a forum throughwhich internet users can log on assuming the role of either a bidder or a seller. The AuctionEBAYS CASE2model allow sellers to post a wide range of different items for sale by which they are required togive a brief description of the item, set the minimum price required and the deadline to close theauction. On the other hand, bidders search the site for required item from different part of theworld and place a bid to what they are willing to pay.This e-business model became very successful and by 2008, eBay Inc. generated a revenue ofalmost US$7.7 billion with hundreds of millions registered users and over 15000 employees. Thecompanys success was attributed by various factors which include; (1) using a database thatevolves dynamically to manage millions of auctions, personal identifications and productinformation from the buyers and sellers thus proving to be more effective. (2) Providing anefficient viable market built on fairness and trust within a strong community. (3) Helpingminimize fraud using a novel feedback system that enables the community to police itself a